BEIJING/SINGAPORE: Iron ore futures prices slid to their lowest in nearly three weeks on Thursday, pressured by shrinking steel margins and faltering demand following the completion of pre-holiday restocking in top consumer China.
The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) slipped 1.29 percent to 805 yuan (USD116.88) a metric ton, after touching its lowest since March 12 at 793.5 yuan earlier in the session.
The benchmark May iron ore on the Singapore Exchange was 0.71 percent lower at USD105.55 a ton as of 0703 GMT. It hit its lowest since March 16 at USD104.50 earlier. Sentiment in global metal markets soured after US President Donald Trump failed to provide clarity on when the Middle East conflict might end. Oil prices surged back above USD100, rekindling fears of inflation, interest rate hikes and the potential for a recession.
In China, some domestic steelmakers have completed feedstock restocking for the Qingming festival over April 4-6, with the resultant drawdown in spot liquidity pressuring prices, said Xinli Chu, an analyst with broker China Futures.
Additionally, the need for capital rebalancing at the start of the month might spur some selloff on the ore side, said a Singapore-based trader on condition of anonymity as he is not authorised to speak to media.
Comments
Comments are closed for this article.